Daymond John Accuses Business Partners of COVID-19 Fraud

Daymond John, the founder of FUBU and a prominent figure on the television show *Shark Tank*, has filed a lawsuit against Lisa Kornman Avila and Rashmi Budhram, alleging that they absconded with "at least tens of millions of dollars" in commissions owed to him. The lawsuit, filed on April 3, 2023, claims that the duo, who operated under their company Buko LLC, failed to pay John after he facilitated lucrative contracts for personal protective equipment (PPE) during the COVID-19 pandemic. John asserts that his company, The Shark Group, was instrumental in securing contracts with various state governments, including the California Department of General Services and the New York State Department of Health and Mental Hygiene, for essential PPE supplies.

The Independent

The partnership between John and Buko LLC began in 2014, with John bringing the company on as a preferred partner to source products for clients. The arrangement allowed Buko to utilize John's brand and connections, which were particularly valuable during the pandemic when demand for PPE surged. According to the complaint, Buko was responsible for sourcing the PPE and was to pay John a commission of 20% of total revenue and one-third of net profits from sales.

The Independent

As the pandemic escalated in early 2020, John claims that Buko was able to secure significant orders, including a $233.9 million purchase order from California for PPE. However, issues arose regarding sourcing and financing, leading to complications in fulfilling these orders. Despite these challenges, Buko reportedly received substantial payments for PPE orders, yet John alleges that he has not received any of the agreed-upon commissions.

The Independent

The lawsuit details a troubling shift in communication, with Kornman and Budhram allegedly ceasing contact with John shortly after the initial sales were completed. By May 2020, just two months into their partnership, John claims he was unable to reach them, and six years later, he has yet to receive any payment. The complaint further alleges that Kornman and Budhram restructured Buko under different names to obscure their financial dealings and avoid paying John.

The Independent

John is seeking a money judgment and punitive damages, with the amount to be determined by a jury, as well as interest and attorneys' fees. Buko LLC, now operating as 5 Time Zones LLC, has approximately three weeks to respond to the allegations. The case highlights the complexities and potential pitfalls of business partnerships, particularly in high-stakes environments like the PPE market during a global health crisis.

The Independent

While John’s claims are serious, the defendants have not publicly responded to the allegations. The lack of comment from Kornman and Budhram raises questions about their perspective on the situation, which remains undisclosed at this time.

The Independent

“To date, defendants have refused to pay any money to Shark, despite securing multiple orders worth hundreds of millions of dollars from [the State of California] and other entities due to Shark’s efforts,” — Daymond John, Founder of FUBU

The Independent

“Our complaint speaks for itself and we do not feel the need to comment any further at this point,” — Matthew Blit, Attorney for Daymond John

The Independent